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The deal continues BHG's more recent streak of securitizing loans collateralized exclusively by consumer loans. The deal is the program's sixth term 144A securitization backed by consumer loans.
Classes A1 through A3, which is composed of seven tranches, are expected to pay coupons of 6.39%.
A stop advance applies to first-lien loans that are delinquent by 180 days or more, while a stop advance requirement applies to second-lien loans that are delinquent by 60 days or more.
Persistently high mortgage rates will shrink securitization volume by dampening home sales and pushing more buyers toward all-cash purchases.
Super senior tranches benefit from credit enhancement of 15.03%, KBRA said. Senior notes that are not interest only—A19 through A25—benefit from credit enhancement levels of 8.20%.
